Suppose a new cost-saving device will generate $1,000 net savings per year to a firm. The device costs $10,000. Should the firm purchase the device?
A) definitely
B) absolutely not
C) The firm is indifferent between buying the device and not.
D) More information is required to answer.
D
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If the demand for loanable funds curve shifts rightward from the curve shown in the figure above, the shift could be the result of
A) a rise in the real interest rate. B) a decrease in expected profit. C) a fall in the real interest rate. D) an increase in expected profit. E) a decrease in real GDP. The figure above shows the supply of loanable funds curve.
Fill in the blank: Other things constant, the growing availability of college degrees being offered through online programs will tend to ________ the price elasticity of demand for more traditional college degree programs
A) leave unchanged B) decrease C) increase D) alter for the better
As a consumer moves rightward along an indifference curve, the
A) consumer remains indifferent among the different combinations of goods. B) consumer generally prefers the combinations of goods farther rightward along the indifference curve. C) income required to buy the combinations of the goods always increases. D) relative price of both goods falls.
Which U.S. president, when asked why he had proposed a tax cut, responded by saying "To stimulate the economy. Don't you remember your Economics 101?"
a. Dwight D. Eisenhower b. John F. Kennedy c. Ronald Reagan d. Bill Clinton